Most investors appreciate the merits that a globally diversified portfolio can have.Similarly, many have benefited from the concept of investing for income and the power of reinvested dividends. Combine the two and you would have a very attractive investment proposition. Well, that is exactly what Neptune has done. The individual performance of its UK income, European, US, Japan and Russia funds would seem to indicate that the Neptune team know how to pick stocks. Robin Geffen, the chief investment officer and manager of the global equity as well as the newly launched global income fund, calls on the skills of Felix Wintle for the US, Chris Taylor for Japan and Rob Burnett for Europe in managing the portfolio. Stocks are selected on a global sector, best ideas basis from across the Neptune team. The objective of the fund is to achieve an income in excess of the MSCI world index alongside the potential for capital growth predominantly from investing in a portfolio of global equities and global fixed-interest stocks. The fund has a go-anywhere approach, with 27 per cent presently in the Far East, 23 per cent Europe, 19 per cent North America, 14 per cent emerging markets and 14 per cent Japan. The fund aims to exploit high-growth dividend opportunities found in emerging markets as well as some value-oriented stocks in more mature markets. The fund is composed of 50 evenly weighted stocks and has a target yield of between 3.5-4 per cent. However, the current gross running portfolio yield exceeds 4.5 per cent. I can see this being a surefire success.
Warren Perry is head of research at Churchill Investments